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The Effect of Age Discrimination Laws on Age-Earnings Profiles of Postsecondary Faculty

  • Elda Pema


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    This study investigates the impact of the abolition of mandatory retirement on earnings profiles of faculty in postsecondary institutions. The Age Discrimination in Employment Act (ADEA) excluded faculty from the protection of age discrimination laws until January 1, 1994, due to perceived adverse effects of this legislation on the academic labor market. After 1994, research has found that more faculty are remaining employed beyond the age of 70 and more institutions are offering early retirement plans. This study adds to the literature by finding that the policy change has steepened age-earnings profiles for cohorts entering the labor market, suggesting a stronger job attachment, and, potentially, efficiency gains. Copyright International Atlantic Economic Society 2010

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    Article provided by Springer & International Atlantic Economic Society in its journal Atlantic Economic Journal.

    Volume (Year): 38 (2010)
    Issue (Month): 1 (March)
    Pages: 65-80

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    Handle: RePEc:kap:atlecj:v:38:y:2010:i:1:p:65-80
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    1. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
    2. Graves, Philip E & Marchand, James R & Thompson, Randal, 1982. "Economics Departmental Rankings: Research Incentives, Constraints, and Efficiency," American Economic Review, American Economic Association, vol. 72(5), pages 1131-41, December.
    3. David Neumark & Wendy A. Stock, 1999. "Age Discrimination Laws and Labor Market Efficiency," Journal of Political Economy, University of Chicago Press, vol. 107(5), pages 1081-1110, October.
    4. Moore, William J & Newman, Robert J & Turnbull, Geoffrey K, 2001. "Reputational Capital and Academic Pay," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 663-71, October.
    5. Richard Dusansky & Clayton J. Vernon, 1998. "Rankings of U.S. Economics Departments," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 157-170, Winter.
    6. James Banks & Sarah Smith, 2006. "Retirement in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 22(1), pages 40-56, Spring.
    7. Ransom, Michael R, 1993. "Seniority and Monopsony in the Academic Labor Market," American Economic Review, American Economic Association, vol. 83(1), pages 221-33, March.
    8. Orley Ashenfelter & David Card, 2002. "Did the Elimination of Mandatory Retirement Affect Faculty Retirement?," American Economic Review, American Economic Association, vol. 92(4), pages 957-980, September.
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